The country dropped to the sixth in 2018 from second in 2014
In 2014, India was second in the list of countries having the most number of elite insurance agents. Four years later, it has dropped to sixth position, with number of Indian agents in the Million Dollar Round Table (MDRT), falling 61 percent to 2,892 (as of July 1,2018).
Often considered the gold standard for insurance agents across the globe, Life Insurance Corporation of India (LIC) has been on the top of the MDRT list since 2014.
Founded in 1927, the MDRT is a global, independent association of more than 62,000 of the world's leading life insurance and financial services professionals from more than 500 companies in 69 countries.
MDRT has a strict entry criteria for membership, which is based on the premiums and commissions earned by an insurance agent. Globally, MDRT membership is recognised as the standard of excellence in life insurance and financial services business. It has two categories -- Court of the Table and Top of the Table. In both categories, agents are ranked based on total premium income and commissions generated, but the only addition in the latter is the additional business criteria.
Sources said the tightening entry criteria has led to a reduction in the number of agents qualifying for the MDRT list.
In an emailed response to Moneycontrol, LIC said that the number of agents qualifying for MDRT has seen a steady increase. LIC added that 9,251 agents (compared to 8,297) qualify for MDRT 2019.
How does one qualify?
Getting onto the MDRT list is no easy affair. For instance, to qualify for membership in 2018, an agent was required (in the previous year) to raise a minimum $164,000 in annual gross income from the sale of insurance and financial products. Further, a minimum $47,500 must be income from new business generated during the previous year.
For the Court of the Table (COT) category, an agent was required to net $282,000 in commissions and $564,000 in premiums. For the Top of the Table (TOT) category, the same stands at $564,000 in commissions and $1,128,000 in premiums.
Those who get selected can attend exclusive events and are eligible to learn and interact with some of the top financial services professionals across the world. This opens up future partnership opportunities and provides a great platform about job opportunities in other markets and companies.What is the eligibility criteria for 2019?To be eligible for COT in 2019 (based on 2018 business), agents will have to receive a minimum $288,000 in commissions and $576,000 in premiums. Of this, at least 50 percent must come from products listed in the risk-protection category.Similarly, for TOT, agents will have to collect $576,000 in commissions and $1,152,000 in premiums. Of this, at least 50 percent must come from products listed in the risk-protection category.